02/09/10

The door to real estate competition -- and consumer choice -- continues to slowly creak open in Canada. After three years of investigation and negotiation, the federal Competition Bureau is attacking the Canadian Real Estate Association and its Multiple Listing Service, it's reported today. With more than 90 per cent of property transactions listed on MLS, Canadian home sellers face a near-monopoly and pay an average 5 per cent commission on selling their homes; at an average price of over C$300,000, that's a C$15,000 hit. As previously blogged here, court challenges to CREA's rules have been unsuccessful, but a Competition Tribunal ruling may encourage the belated arrival in Canada of American services such as Trulia and Zillow -- or encourage publishers like Canwest Global's Househunting.ca and Torstar's Homefinder.ca to enhance their digital divisions' existing use of Adicio products. "Though the mills of God grind slowly, yet they grind exceeding small," at least in Canada. UPDATE: Globe & Mail says the Bureau's actions won't encourage American-style services, but Toronto Star says a separate investigation against Toronto Real Estate Board might do so. And further National Post coverage here (including quotes from a fellow with an unusual surname).